U.K. Balance of Payments Worsens

Latest Data Raises Doubts About Sustainability of Recovery

By

Jason Douglas and

Ilona Billington

Updated Dec. 20, 2013 8:11 a.m. ET

LONDON—The U.K. economy grew strongly in the third quarter but its balance of payments with the rest of the world deteriorated sharply, data showed Friday, raising doubts about the durability of Britain's economic recovery.

The Office for National Statistics on Friday confirmed that the U.K. economy expanded 0.8% between the second and third quarters, an annualized rate of 3.2%. The expansion was driven by higher output across the...